The next step, according to Ryan, is cutting spending. And while Congress hasn’t gotten that far yet, the agenda is clear. If a version of the tax plan passes, the next major item of business in Congress will likely include major cuts to Medicare, Medicaid and Social Security.
Read My Lips: No New Jobs
The entire tax plan is built around one premise: that cutting taxes causes the economy to grow and creates jobs. The problem is, this doesn’t appear to be true.
This time, “welfare reform” won’t just target low-income mothers; it will mean drastic cuts to Medicare, Medicaid and Social Security.
A study from the University of Pennsylvania’s Wharton School of Business found that additional economic growth due to the tax plan would be miniscule — less than a tenth of a percent per year in the near term. That’s not the kind of growth the economy needs to produce more, or better-paying jobs.
Meanwhile, a study from the Institute for Policy Studies found that corporations that paid lower tax rates actually cut jobs — while passing the gains on in the form of higher CEO pay.